Pranav V. Patel of Tamarac, Florida, has been barred from associating with an investment advisory or brokerage firm in any capacity, or otherwise working as a broker or investment advisor representative according to a Securities and Exchange Commission (SEC) Order containing findings that Patel committed securities fraud. In the Matter of Pranav V. Patel, Administrative Proceeding File No. 3-18238 (Sept. 29, 2017).
Patel consented to an SEC judgment, which enjoined him permanently from engaging in conduct violative of Securities and Exchange Act Section 10(b), SEC Rule 10b-5 and Securities Act of 1933 Section 17(a). Securities and Exchange Commission v. Richard St. Julien et al., Civil Action No. 16 Civ. 2193 (E.D.N.Y. Sept. 28, 2017).
The Order identified a Complaint filed by the SEC alleging Patel to have obtained kickbacks for inducing customers to purchase ForceField Energy, Inc. stock. Evidently, those kickbacks were not made known to customers when Patel made the investment recommendations. Patel pleaded guilty to having committed securities fraud; conduct violative of 15 USC Sections 78ff and 78j(b), as well as 18 USC Sections 2 and 3551. United States v. Jared Mitchell, et al., Crim. Indictment. No. 1:16-CR-00234 (E.D.N.Y. Sept. 12, 2016).
Financial Industry Regulatory Authority (FINRA) Public Disclosure reveals that Patel has been identified in three customer initiated investment related disputes containing allegations of his wrongdoing during the time he was employed with GunnAllen Financial, Dawson James Securities, Inc., and CBG Financial Group, Inc.
Specifically, on March 5, 2010, a customer filed an investment related written complaint involving Patel’s conduct, in which the customer requested compensatory damages based upon allegations that Patel placed unauthorized stock trades in the customer’s investment account. Then, a customer initiated investment related arbitration claim involving Patel’s conduct was settled for $75,000.00 in damages based upon allegations that Patel breached his fiduciary duties to the customer, and made unsuitable investment recommendations and misrepresentations to the customer pertaining to the customer’s over-the-counter equities transactions. FINRA Arbitration No. 11-03722 (Aug. 27, 2012).
Additionally, a civil lawsuit was lodged against Patel, wherein customers sought $62,855.00 in damages supported by allegations that ForceField Energy Inc. stock was improperly sold to five customers away from Dawson James Securities, Inc., in which the issuer’s agents compensated Patel in return for his sales efforts. Civil Action No. 15 Civ. 3020 (June 6, 2016).
Patel’s registration with Dawson James Securities, Inc. has been terminated as of December 2, 2015. He has been employed with six broker dealers, one of which, NSM Securities, Inc., has been expelled by FINRA according to an Office of Hearing Officers Order Accepting Offer of Settlement containing findings that the firm committed securities fraud. Department of Enforcement v. NSM Securities, Inc., et al., No. 2011027667402 (Sept. 26, 2014).
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